Medicare Reimbursement Cuts
Medicare and TRICARE to reduce physician reimbursements by 5.5% next year
Millions of senior citizens, disabled patients, and miltary families and retirees can be affected by proposed Medicare reimbursement cuts which will also affect TRICARE.
On January 1, 2007, U.S. physicians face reimbursement cuts form Medicare and TRICARE of approximately 5.5 percent. Over the next nine years, the cuts will increase to 37 percent.
(TRICARE is the military insurance plan for active and retired military members and their families.)
What does this mean?
According to a survey from the American Medical Association (AMA), 45 percent of the physicians surveyed said they would stop taking new Medicare and TRICARE patients. Many of those surveyed also indicated they may have to discontinue services to Medicare and TRICARE patients they are already seeing. Medicare reimbursement is already less than most insurance plans.
Will the Physician Shortage Grow
Thirty five percent of physicians in the U.S. today are over age 55. The AMA has expressed fears that significant reimbursement cuts such as these could force them into early retirement. This would further the shortage of physicians significantly.
Physician Costs Rising Too Fast
President Bush argues that physician costs to Medicare and TRICARE have increased faster than expected over the past few years and this is the reason for the proposed cuts. However, the AMA points out that physician costs have increased because of significant increases in the Medicare population due to the fact that the population is aging.
With the first of the Baby Boom generation turning 60 this year, and Medicare reimbursement cuts expected to increase to 37 percent over the next nine years, the Baby Boomers will join the millions of seniors, disabled and Military families and retirees seeking physicians willing to take them on as patients.
The AMA has compiled a Q&A sheet to help educate the public about this crisis. Patients can also find more information at the Patients Action Network or by calling toll free 888-434-6200.
